Liability & LegalQuestion 118 of 200

California Labor Code §2775 (codifying Dynamex Operations West, Inc. v. Superior Court (2018) and AB 5) classifies workers using the ABC test. For most security guard work, the practical effect is:

a.Guards are presumed independent contractors whenever they are paid an hourly rate for shifts that they accept one at a time, and the burden then falls on the guard to prove that an employment relationship exists at all between them
b.Borello has no relevance in California since AB 5, because the multi-factor common-law control test it announced was repealed outright and no worker-classification question in this state can now be decided under it by any court
c.Guard classification is determined by federal law only, so the Fair Labor Standards Act economic-realities test governs the question and the state's own ABC test cannot be applied to a private patrol operator at all in this context
d.Guards are presumed employees unless the hiring PPO can satisfy all three ABC prongs (A: free from control; B: work outside the usual course of the hirer's business; C: customarily engaged in an independently established trade) — and security work is rarely 'outside the usual course' of a PPO's business, so most guards must be employees

Explanation

Labor Code §2775 codifies the Dynamex ABC test for most California workers. Prong B — the work must be performed outside the usual course of the hiring entity's business — is the typical sticking point for PPOs, whose business is providing guards. As a result, most guards working for licensed PPOs must be classified as W-2 employees, not independent contractors. Misclassification exposes PPOs to wage-and-hour, payroll tax, workers' comp, and PAGA claims. Borello's multi-factor test (S.G. Borello & Sons v. DIR (1989) 48 Cal.3d 341) still applies to certain occupations exempted from §2775, but security guards are not on that exempt list.

Law Reference: Cal. Labor Code §2775 (codifying Dynamex/AB 5); S.G. Borello & Sons v. DIR (1989) 48 Cal.3d 341

This topic, taught in full in the California Guard Card (BSIS Security Guard) guide. California Guard Card — Complete Study Guide (2026) — PDF + EPUB, $9.99 · 14-day refund →

Practice all 200 questions free — no signup required.

Own the complete California Guard Card (BSIS Security Guard) guide — PDF + EPUB, $9.99 →

Related questions on this topic

Last reviewed: · editorial process

PrepPass team · Verified against California BSIS Guard Card Exam · How we review
Report